KL shares likely to stage technical rebound next week
Posted on July 29, 2012, Sunday
KUALA LUMPUR: Share prices on Bursa Malaysia might stage a technical rebound next week, underpinned by improved global sentiment, dealers said.
They said the market would recover on hopes that the European Central Bank (ECB) would intervene in markets as well as good recovery in Spain and Italy.
On Friday, the global index, MSCI All World, had its best one-day gain in two weeks, closing the session 2.3 per cent higher and reversing a five-day decline.
Meanwhile, FTSE Bursa Malaysia KLCI (FBM KLCI) might find support at 1,620 level and trend moderately, Vice-President and Head of Retail Research of Affin Investment Bank Dr Nazri Khan said.
He said global equity found its bullish dose following unexpected comments from ECB president Mario Draghi that the bank would step in to keep the region from collapsing.
“ECB’s pledge boosted risk appetites and helped commodity and equity markets to reverse early losses,” he told Bernama.
Nazri said several other ECB governors who supported a proposal to borrow without limit from the ECB under the European Stability Mechanism bailout fund to save Spain and Italy also boosted sentiment.
“The second quarterly results and budget 2013 anticipation would be the key drivers for the local broad market,” he said.
On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI closed 18.06 points lower at 1,624.94.
The Finance Index fell 36.17 points to 14,655.04, the Industrial Index decreased 20.11 points to 2,854.51, the Plantation Index went down 147.9 points to 8,717.03 and the FBM Emas Index declined 138.65 points to 11,118.82 from last Friday.
The FBM ACE Index rose 45.15 points to 4,345.75.
The FBM Mid 70 Index declined 217.24 points to 12,240.64 and the FBM 100 Index ended the week 135.42 points lower at 10,938.23.
The weekly volume decreased to 5.212 billion shares valued at RM8.744 billion from 5.916 billion shares worth RM8.29 billion last week.
Main market volume was down to 3.983 billion shares worth RM8.521 billion from 4.006 billion shares valued at RM7.902 billion transacted previously.
Volume on the ACE market decreased to 820.373 million shares valued at RM166.148 million from 1.367 billion shares worth RM301.518 million last week.
Warrants declined to 381.629 million units worth RM47.276 million from last week’s 522.619 million units valued at RM79.566 million. – Bernama